Ok, everyone take a breath, and get used to the fact that crypto bulls have lost steam, they showed all signs of it before, when a number of times, price of King crypto BTC was going below 8000 dollars yesterday. However , some buying was happening to take it back again to that level again. This bull run was a big wave all right that started at Saturday ended maybe yesterday, or day before yesterday. Keep breathing and relax.
Now, obviously the markets would correct, so wait untill it does and reaches a point where it’s safe to buy again. Because in those levels as it was earlier with the rocketed bull run raised prices prediction to the upside was really difficult, as long as the volumes are high, prices go to the upside, but selling to book profits was inevitable, selling price action reflected in the price triggers panic and more selling now would just bring prices down. ETH and BTC was at a over brought and therefore over priced territory for a while, from there it had to correct, when volumes stop.
Right, can’t say where the prices would settle now, but congratulations to the crypto players who made profits(: ...smart people you were. Anyway here are my tips in investing in cryptos for profits, this principle may hold good for investing in other financial instruments like stocks also.
**Study the Market **
Even experts and news we read go wrong. So, study market everyday and get knowledge and when you would start dabbling with investing you would understand things first hand really well.
**Check for these -
Most popular crypto coins making news.
After getting to know it, study each coin. Go to their website, learn about what the crypto project is all about - their goal, know the main founder and the founding team of the coin blockchain project and see if they have relevant experience, accomplishments and expertise plus the vision for their pet blockchain project.
Check for the utility and functionality of the project, if it serves a purpose and has a good development team behind it, your mostly got a good crypto that has potential. In FUture maybe 5 years from now, because of the coins utility and adoption, its prices would shoot up.
The developments in the crypto world. -
This includes coin project news, major events happening like hard forks, coin listing by exchanges, other events like main net launches, partnerships, adoption of a particular blockchain project by a major company, a phone wallet listing a coin etc. From there you can keep an eye out for few coins, that is the talk of the media that their prices would go up because of so so news happening.
Study the trading pattern -
Obviously you check the prices of the coins, now also check for the trading volume, market cap and their price volatility. Understand certain trading fundamentals, like the coin’s price support and resistance level, moving averages - 200 EMA,, 50 EMA etc. All this will help you figure when to enter the market. This is how you can time the market to a limited extent.
For ex, if the price of a coin has gone below a key support level, it’s time to sell it because it’s in a bearish wedge, buy it later after its reached the bottom or lowest possible price where the coins find support from buyers to be brought again. Similarly resistance, if a coin is not able to break a certain price level then that price is the resistance, sell it that time when the coin has reached its ceiling as maybe that’s the highest point the crypto price coin would reach before it falls down to its support level.
There is so much to learn in trading analysis, check the price movement graphs, understand the cumulative price movements of the coin from hours/months/years historical data. It generally gives some idea of how the coin price action may behave based on history. Traders say knowing the patterns of the price movements (double drop, cup and saucer, head and shoulders) would also help to get proper signals on when to enter and exit the market.
Develop safe practices of investing, which means only invest the amount your prepared to lose, which is mostly the amount you can afford to lose.
**Get used to the volatility of cryptos.
**
Yes, you know they can go up to the moon like they did recently, and they can crash as well. So, if you invested in a crypto and its price is going down, its ok, leave it as when you invested this money you are already prepared to lose it, your on a gamble game.
Today it would go up by 12 percent, then tomorrow come down by 5%, then come down again by 10% and go up by 6%. Just keep your corpus invested according to stop loss measure that you you have prepared for yourself which is generally based on where the coin has its key support. Don’t take out all your funds coz coin went down now, if it has reasons to go up, give it time maybe 3 months, end of year.
It would definitely help if you keep reading about the coins and crypto market and understanding why are they going down and make your decision, and just be ok with losing some money, its normal.
Right, I am concluding. I am a novice in this crypto investment world, I invested once in mutual fund and only this year dabbled with crypto investments and I made so many mistakes. Nothing beats the learning from experience.
I experienced massive sell offs and panicked just last week, then I experienced confusion and regret when prices shot up 2 days later, according to me this takes some nerves. During this kind of bull run, confusion comes on when to sell, but maybe if you have made enough profits and know that you can’t analyse with proper technicals on why the coins are going up and where they are heading now when they are in fact overpriced and over brought, just sell. We should be happy with whatever profits we made(:
Some references to study cryptos - coinmarket cap, crypto compare, newsbtc, zycrypto, cointelegraph, coindesk,utoday, cryptomode, coinstats. To learn about the coins also check coin central, its blockchain etc … Google these for website url. There is tradingveiw too, that has graphs on cryptos, if your registered in Binance, the information tab has good trade graphs of crypto price movements with trader tools I think.
Lastly also choose a wallet to store your cryptos, it is not recommended to leave it in exchange wallet. Out of experience I can say, you get very less money when cryptos are in crypto exchange custody wallet , think there are 3rd party charges on the kept exchange crypto , so pick a wallet!!. Also beware of philising - so, always make note or bookmark the right url address of the crypto exchange. Do all this first before investing, in the long run all this would prove really worth it!!!
So long guys. I am sure there is lot of opportunities to make money in cryptos this year only, there are valid reasons and certains coins should do well in prices. So, watch out for them.
Happy weekend in advance.